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Effective Rates Of Protection And Hidden Sectoral Transfers By Public Authorities

  • Kolsen, H.M.
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    Government intervention changes the allocation of resources through effects on input and output prices. While explicit forms of intervention have been the subject of many studies, implicit forms of intervention have been given much less attention. The price and output policies pursued by public authorities systematically cross-subsidise from densely populated to sparsely populated areas. Thus, their effects are in the opposite direction from the effects of tariffs and quotas. Examination of the effects of one form of intervention in isolation overstates the net effects of that intervention. Effective rates of cross-subsidies must be taken into consideration when attempting to measure the impact of government intervention on resource allocation.

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    File URL: http://purl.umn.edu/23026
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    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural Economics.

    Volume (Year): 27 (1983)
    Issue (Month): 02 (August)
    Pages:

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    Handle: RePEc:ags:ajaeau:23026
    Contact details of provider: Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    1. Thomson, Norm J. & Walsh, Cliff, 1981. "Cross-Subsidisation Of Rural Areas Via Utility Pricing Policies," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 25(03), December.
    2. J.C. Quiggin & A.B. Stoeckel, 1982. "Protection, Income Distribution, And The Rural Sector," Economic Papers, The Economic Society of Australia, vol. 1(2), pages 57-71, 09.
    3. Warr, Peter G, 1977. "Tariff Compensation via Input Subsidies," The Economic Record, The Economic Society of Australia, vol. 53(144), pages 508-16, December.
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